Fiverr Earnings Reaction
The company focuses on long-term success rather than short-term growth at all costs.
- Revenue for the quarter was $85 million, up 13% year over year (YOY), missing the lower end of guidance. Active buyers reached 4.2 million (flat since Q4 2021), and spend per buyer is up 14% year over year to $259.
- The company expects Q3 revenue to grow 9.5% at the midpoint to $81.5 million.
- Fiverr lowered full-year guidance from 19% growth YOY to 13% at the midpoint, but it increased guidance on adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) from $13.5 million to $20.5 million at the midpoint.
- Revenue from its Q2 2017 cohort is over five times the initial performance marketing investment.
- Management said that in the current environment the company will look to deliver continuous EBITDA expansion and free cash flow rather than grow at any cost.